MEAT OUTLOOK

Dominion, Volume 27, Issue 15, 12 October 1933, Page 10

MEAT OUTLOOK

‘Distinctly Encouraging’

MR. D. JONES’S VIEW

Gain to New Zealand

“The Ottawa Agreement as far as New Zealand' is concerned has been freely criticised, but I have never had any doubts about the substantial gain New Zealand received through it,” said Mr. David Jones, chairman of the Meat Producers’ Board, iu an interview with “The Dominion” on his return from England on the Tamaroa yesterday. “The New Zealand proposals were in the main adopted except that we did not get a duty on foreign meat entering Britain. This was rejected principally because of political difficulties in Britain and the financial loss to her has been 'greater. The effect of the Ottawa Agreement and the further treaties and agreements aiising from it was that about 40,000 tons of beef and one million carcases of mutton and lamb had been definitely excluded from Britain for the year 1933, he said. This would be increased by a 5 per cent, reduction on foreign mutton and lamb on January I, 1934, and a further reduction of 5 per cent, on April 1, 1934, making 35 per cent, reduction in all. The reduction in bacon in the first half of this year had been some 16 per cent, below the corresponding period of 1932, and would be progressively reduced as Empire supplies increased. “If this meat had been allowed to flow unrestricted into Britain a complete collapse in prices would have taken place. Before restriction the average prices were: Lamb, 5d a lb; wether mutton, 3d; ewes, 2d; frozen beef, 2d; and these prices, it was believed, could not have been sustained. Such a position would have meant that New Zealand’s wether mutton and frozen ox beef might have paid a little more than the expenses of shipment, while cow beef, boneless beef and ewe mutton would have beep valueless (ind lamb prices far below the cost of production. “The effect of the preferential system in favour of the Dominions inaugurated at Ottawa had been definitely to block the huge quantity of meat from Britain. The accumulation of meat had taken some time to go into consumption, but the glut now had been relieved and the market for mutton and lamb, and pork particularly, was in a healthy position. The Dominion exported to Britain last season about 11, carcases of mutton and lamb, and the whole of this would have gone into consumption before the new season’s meat arrived in Britain. Pushing Meat Sales. “The Meat Board last year increased its advertising efforts, and through this our expenditure was more than our income,” Mr. Jones continued. “This expenditure 'has been amply justified, and there is no Empire product in Britain to-day as well advertised as New Zealand iamb. Over 12,000 butchers’ shops display our attractive advertising with its continuous appeal, “Ask for New Zealand lamb; British to the backbone and the best in the world.” Our advertisements appear in papers and Home magazines that have a circulation of 2,300,000. We have made the retail butcher our friend by advertising and pushing his sales, and we are getting the results.

“In the last five years we have concentrated a great deal on the north of Britain, where it was always maintained our meat was too good and heavy to sell. Iu .1929, 907,000 lambs were shipped to West Coast ports. This year we will almost touch 2,000,000. This increase has enabled the board to improve the shipping service, and with the increase in dairj- produce the two boards in co-operation have now arranged with the shipping companies a very satisfactory service that will further improve our position and output. ''Responsible circles in Britain consider that the financial and trading position Is definitely improving,” he said. “In August there were half a million more insured persons in employment than at the same period last summer. The reduction in unemployment means a saving of £200,000 a week, which amounts to over £10,000,000 a year. “The outlook for meat in the coming season is distinctly encouraging. I would not venture on the gamble of forecasting prices, but it is reasonable to expect a very substantial increase over last year. Not only has meat improved, tout wool and pelts and other byproducts are all selling at advanced prices, and the. output, of lamb from Australia promises to be much less than the previous year. “My advice to the farmer is to be very wary about selling his stock forward. He is bard up aud entitled to every penny that his stock is worth.”

Mr. Jones's Mission.

With Mr. W. A. Torus, chairman of the Dairy Produce Control Board, Mr. Jones’s mission to England was primarily to renew the freight contract, which had run out. “In August, after rather long negotiations,” he said, “we arranged the new contract, which I am satisfied will be an excellent one for New Zealaud. The reduction obtained amounts to 7.05 per cent, off the previous meat rate, and the total saving in freight on refrigerated cargo will be about £lBO,OOO a year.” Although the Meat Board did not control the wool freights, he had entered into negotiations for a reduction in those in addition.

The meat and dairy boards acted .together in connection with shipping contracts aud regulations, Mr. Jones said, and he had been able to arrange for an improvement in the regularity of arrivals of ships in Great Britain. This included a considerable increase in the number of scheduled departures from New Zealaud. The quantity of meat actually on the water had a very important bearing on tlie stability of the market in Britain, and Mr. Jones was satisfied that as a result of the agreement this position would be very much improved. In addition to the three contracting parties for shipping New Zealand’s produce Home, the Shaw, Savill Company, the New Zealand Shipping Company, and the Commonwealth and Dominion Line, the Blue Star Line, owned by Messrs Vesty and Co., had now been made a fourth party to the contract, and ho considered this another good move for New Zealand.